BlackBerry (BB): Earnings Beat, IoT Growth, Analyst Neutrality

Core Insights - BlackBerry Limited (NYSE:BB) is recognized as one of the best stocks under $5 to buy, with RBC Capital reaffirming a Sector Perform rating and a price target of $4.50 following the company's Q3 FY26 earnings report [1] Financial Performance - BlackBerry reported Q3 2026 results on December 18, achieving total revenue of $141.8 million, which exceeded prior guidance and represented a 9% sequential increase from Q2, although it showed a 1% year-over-year decline [2] - The QNX IoT division achieved record quarterly revenue of $68.7 million, marking a 10% year-over-year growth, driven by deeper automotive penetration and expansion into adjacent markets [3] - Other revenue segments included Secure Communications at $67 million and Licensing and other revenue totaling $6.1 million [3] Guidance and Future Outlook - Management raised the full-year FY26 revenue guidance midpoint to $531-541 million from the previous $519-541 million, while maintaining adjusted EBITDA at $82-101 million and non-GAAP EPS at $0.11-0.15 [4] - The sustained momentum in QNX and Secure Communications is identified as key growth drivers for the company [4] Company Overview - BlackBerry Limited is a cybersecurity and software company that provides intelligent security software and services to enterprises and governments, with a portfolio that includes cybersecurity solutions, unified endpoint management, and QNX software for mission-critical applications [5]